and the LOGFILE is a normal DEBUG-leveled periodic-rotating-file-handler. For some strange reason, the DEBUG/INFO leveled stuff turns up fine but when I do a jboss-logging ERROR/FATAL, it ends up in the CONSOLE (from the root logger). I thought it would also go the same route since the classname matches the category. Any theories? Tried with 7.1.0 and 7.1.1...

Assuming UtilServlet belongs to the com.acme package, then I expect the FATAL log message to be logged to app.log when that exception occurs. If that isn't happening then it appears to be a bug. Is this reproducible against latest nightly build? And you aren't having any application specific logging configuration files within your application, are you?